Hotel rates are projected to rise around the globe next year by 1 to 3 percent, according to Advito, the travel consultancy spun off from BCD Travel, in its 2017 Industry Forecast.
The United States and Canada are expected to experience the steepest increases, with gains of 3 to 5 percent, followed by the Middle East and Southwest Pacific (2 to 4 percent), driven by insufficient supply and strong demand. Latin America and Asia Pacific are both expected to see hikes as high as 3 percent. In Europe, modest economic recovery and very little new supply should produce small gains of between 0 and 2 percent.
Globally, economy airfares should remain flat in 2017, Advito adds, in large part due to low fuel costs, with global business-class fares going up by only 1 percent. That said, the forecast warns of greater variations in fares from region to region. Business fares should remain flat in Europe and Latin America, for instance, but climb by as much as 3 percent in Asia and Southwest Pacific. In North America, regional business fares are expected to increase by 1 percent, while economy regional fares should remain flat.
The complete forecast is available for free here.